Flashcards
MKT Ch. 9 (Test 2)
Cards in this deck (27)
- 1What are Market Segments?The relatively homogeneous groups of prospective buyers that result form the market segmentation process
- 2Why segment markets?-To appeal to the preferences of different consumers
-Respond more efficiently to the specific needs and wants of groups or potential buyers, thus increasing sales and profits
-For non-profit organizations, to satisfy client needs more effectively while achieving the organization's goals. - 3When should a company segment markets?When it expects that this will increase its sales, profit, and return on investment.
- 4What are 3 situations that illustrate effective use of market segmentation?1. One product and multiple market segments (Ex. movies w/ diff. trailers, magazines w/ diff. editions)
2. Multiple products and multiple market segments (Ex. Ford's line of vehicles)
3. Segments of one: Mass customization (personalize and customize your product) - 5What are the criteria to form segments?1. potential for increased profit
2. similarity of needs of potential buyers within a segment
3. Difference of needs of buyers among segments
4. Potential of a marketing action to reach a segment
5. Simplicity and cost of assigning potential buyers to segments - 6What are ways to segment markets?1. Geographic segmentation (where consumers live)
2. Demographic segmentation (population characteristics)
3. Psychographic segmentation (personality/lifestyle)
4. Behavioural Segmentation (behaviour toward product) - 7Examples of Geographic segmentationRegion, city or census metropolitan area (CMA) size, density, climate
- 8Examples of Demographic segmentationAge, gender, family size, life stage, birth era, marital status, income, occupation, education, race, home ownership
- 9Examples of Psycographic segmentationPersonality, lifestyle (PRIZM C2)
- 10Examples of Behavioural segmentationBenefits sought, usage rate, user status, loyalty status
- 11What is the criteria in choosing target markets?1. market size
2. expected growth
3. competitive position
4. Cost of reaching the segment
5. Compatibility with organization's objectives and resources - 12What is a perceptual map?A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands relative to its own and then take marketing actions.
- 13What is product positioning?The place an offering occupies in consumers' minds on important attributes relative to competitive products.
- 14What is product re-positioning?Changing the place an offering occupies in a consumer's mind relative to competitive products
- 15What are the 2 types of positioning?1. Head-to-head positioning
2. Differentiation positioning - 16What is head-to-head positioning?Competing directly with competitors on similar product attributes in the same target market
- 17What is differentiation positioning?Seeking a less competitive, smaller market niche in which to locate a brand, usually stressing the unique aspects of the product
- 18What are the 3 main sales forecasting techniques?1. Judgements of the decision maker
2. Surveys of knowledgeable groups
3. Statistical methods - 19What are the types of forecasts for judgements of the decision maker?1. Direct forecast
2. Lost-Horse forecast - 20What is direct forecasting?-Estimating the value to be forecast without any intervening slope
- 21What is a lost-horse forecast?-Making a forecast using the last known value and modifying it according to positive or negative factors expected in the future.
- 22What are the types of forecasts for surveys of knowledgeable groups?1. Survey of buyers' intentions forecast
2. Salesforce survey forecast - 23What is a Survey of buyers' intentions forecast?Asking prospective customers if they are likely to buy a product during some future time period
- 24What is a Salesforce survey forecast?Asking the firm's salespeople to estimate sales during a coming period (salespeople can be unreliable; too rosy if enthusiastic about a product, too grim if trying to meet a sales quota)
- 25What are the types of forecasts for statistical methods?1. Trend extrapolation
2. Linear trend extrapolation - 26What is Trend extrapolation ?Extending a pattern observed in past data into the future.
- 27What is Linear Trend Extrapolation?The pattern is described with a straight line (assumes that underlying relationships in the past will continue into the future, simplicity, but can affect results).
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- N/A Marketing Flashcards on MKT Ch. 9 (Test 2) , created by J T on 09/03/2016.
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